The Inventory system sends a request for new purchases. The request is compared with previous purchases and inventory levels from the inventory data store. Similarly other departments also make purchase requisitions and these too are checked with past purchase requests and inventory levels. Once the initial requests are verified the requirements are used to create a purchase order for the requested goods.
The request is combined with data from the inventory data store and the vendor data store to create the purchase order. Once the purchase order is completed it is sent to the vendor, the inventory data store is updated to indicate an order has been made and the vendor data store is also updated to keep track of the latest order with that vendor. Simultaneously a notification is sent to the accounts payable department that a purchase order has been sent so that they can prepare for payment of the invoice once received. The purchase order transaction file is updated for the new purchase order and notification is sent to receiving to alert them that a new shipment should be expected.
The vendor ships the goods and when the receiving department receives them compares the goods with the purchase order (From process 2.0) and the vendor data store. After verifying the goods received match the purchase order, a stock notice is sent to the warehouse, data is sent to the general ledger system to update the accounts, the inventory data store is updated to reflect the arrival of the goods, a receiving report is sent to the accounts payable process, a record of the purchase receipt is made and the vendor data store is updated with information pertaining to the shipment (e.g. date of receipt, quality, etc.). Back to Practice
The Inventory system sends a request for new purchases. The request is compared with previous purchases and inventory levels from the inventory data store. Similarly other departments also make purchase requisitions and these too are checked with past purchase requests and inventory levels. Once the initial requests are verified the requirements are used to create a purchase order for the requested goods.
The request is combined with data from the inventory data store and the vendor data store to create the purchase order. Once the purchase order is completed it is sent to the vendor, the inventory data store is updated to indicate an order has been made and the vendor data store is also updated to keep track of the latest order with that vendor. Simultaneously a notification is sent to the accounts payable department that a purchase order has been sent so that they can prepare for payment of the invoice once received. The purchase order transaction file is updated for the new purchase order and notification is sent to receiving to alert them that a new shipment should be expected.
The vendor ships the goods and when the receiving department receives them compares the goods with the purchase order (From process 2.0) and the vendor data store. After verifying the goods received match the purchase order, a stock notice is sent to the warehouse, data is sent to the general ledger system to update the accounts, the inventory data store is updated to reflect the arrival of the goods, a receiving report is sent to the accounts payable process, a record of the purchase receipt is made and the vendor data store is updated with information pertaining to the shipment (e.g. date of receipt, quality, etc.).
Back to Practice